Exam (elaborations)
HUD Practice Test and Correct Answers
- Course
- Institution
HUD Practice Test and Correct Answers
[Show more]
Content preview
HUD Practice Test and Correct AnswersWhich document is most important when working with a client to develop an initial budget as part of a Client Action
Plan? - correct answers Pay Stub
A client would like to purchase a home within one year. The client is motivated to increase household income as a way
to save for a down payment and qualify for a loan. Which is the
best solution for the client to reach this goal? - correct answers Find a second job
A credit report may contain which information? - correct answers The number of accounts in collection status
Six months ago a client left a job as a reporter to start a
business in the retail industry. To prepare to buy a house, the client closed credit card accounts and has been using
savings to
pay down credit card debt and collections. The client has not
been able to save much for a down payment with all the debt
payments but knows about an affordable homeownership
program that only requires a 1% down payment with an FHA
loan. What might result from the client closing the credit card
accounts? - correct answers It increases credit utilization, causing a negative impact on the credit
score.
Which action would a client take to improve a credit score? - correct answers Pay delinquent accounts
A client does not receive a written monthly statement from the credit card company. Which credit law could this
omission violate? - correct answers Fair Credit Billing Act
A client shopping for a mortgage loan presents a housing counselor with an offer from a local mortgage lender. The
interest rate on the offer is 7.5% for a 30-year fixed rate mortgage with a 20% down payment required. The counselor
reviews the client file and determines the client's credit score is 725 and the client's total debt-to-income ratio is 20%. -
, correct answers "I am unable to determine whether the loan is predatory, but I suggest you shop around with other
lending sources."
Which action should a counselor recommend a client take first after discovering identity theft? - correct answers File an
identity theft report
In which situation would a client's responsibilities, recurring costs, and upfront costs be evaluated? - correct answers
When weighing housing options
A client works 40 hours a week making $15 an hour. What is the highest monthly mortgage the client can afford based
on income if the client secures a conventional loan? - correct answers $728
Which type of government insured loan was created for financing homes in rural areas? - correct answers USDA
A client keeps having budget problems due to unexpected expenses. Which financial tool would best assist this client to
prepare for unexpected expenses and avoid increasing credit usage? - correct answers Emergency Funds
A client has a monthly household income of $2,300, monthly debt payments of $450, and an optimal monthly housing
ratio of 32%. What is the client's optimal monthly housing payment? - correct answers $736
Use Front-End Ratio
What is the back-end ratio for a client with a monthly housing expense of $1,250, a monthly total of $88 in other
consumer debt payments, and a gross household income of $4,460 per month (rounded to the nearest whole percent)?
- correct answers 30%
A client earns a salary of $45,000 at a job held for three years. The client has credit card bills, student loans, and a car
loan totaling $500 per month. The client has already saved $3,500 for a down payment and is using an FHA Energy
Efficient Mortgage (EEM). If the client wants to make the minimum down payment for a home priced at $150,000, how
much more does the client need to save? - correct answers $1,750
Under which condition would most down payment assistance programs approve a waiver of the homeownership
education requirement? - correct answers Most will not waive the homeownership education requirement.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Schoolflix. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79650 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now